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August 25, 2008 (InfoPowa News) — Unsubstantiated reports in online media such as Poker News Daily and 911 indicate that the Bodog online gambling group has let go “hundreds of employees” this week in what is being interpreted as a precursor to departing the U.S. market, although this has been denied by company spokesmen.
There are allegations that the company has been slow-paying customers in recent months, although this may well be a not uncommon problem associated with processing American payments occasioned by the UIGEA.
It is known that the company has been making a determined push into Europe and Asia since early 2008, although as far as online poker operations are concerned this is not yet reflected in their latest PokerScout rankings, which have shown a fall in the average number of real cash players per week, repositioning the operation at number 14 below networks like Cake, Absolute, and Microgaming.
Last year, following a bruising legal encounter over patents with First Technology LLC, Bodog lost control of its original domains in a $48 million default judgement by US courts. Founder and at that time President Calvin Ayre subsequently signed a deal with Morris Mohawk Gaming Group of Kahnawake, Quebec, giving it the rights to use the Bodog brand to serve customers throughout North America, whilst international operations remained in Antigua.
Apparently the company then moved most of its operations from Vancouver to Montreal — a short distance from the Kahnawake First Nation enclave where Morris Mohawk is situated. The new regime, according to Poker News Daily’s source inside Bodog, lost many quality employees who did not wish to make the move from Vancouver.
“The staff that had grown to make Bodog one of the top internet gambling sites in the world had, in essence, turned over,” the information site opines. In more recent times, Ayre announced his permanent retirement from Bodog, and has been low profile ever since.
It is now claimed — again on the basis of allegations by an unnamed insider — that in the past week, Bodog has laid off close to 250 employees in Canada, from customer service to management, and staffing levels are currently down to approximately 200 employees, split equally between Vancouver and Montreal. Advertising management has departed following a suspension in the activities of that division.
Neither Bodog nor Morris Mohawk has of yet responded to InfoPowa requests for confirmation.
I know quite a few affiliate managers were let go thursday and that came from the horses mouth to me :)He didn’t say anything about what others were let go.
Here’s an update to yesterday’s story about Bodog:
Bodog Doing Fine, Says CEO: Lay-offs are at service firms
August 26, 2008 (InfoPowa News) — Alwyn Morris, the CEO of the Morris Mohawk Gaming Group that handles Bodog’s North American activities, has responded to reports earlier this week that the online gambling group is in trouble and has laid off hundreds of employees.
In a statement responding to InfoPowa questions, Morris said that Bodog itself has not seen any layoffs.
“The layoffs in question have actually taken place with a firm that provides Bodog some software and marketing support, but we are confident their service levels to us have not been, and will not be affected,” he wrote. “Bodog has not and is not planning to close its doors to any market. In fact, Bodog is researching new potential markets and will continue to accept new players from all existing markets.”
Morris did not comment on reports that US federal authorities are conducting in-depth investigations into Bodog activities and financial processing connections.
With strong indications that the companies involved in the staff cuts are more than mere independent suppliers to Bodog — there are alleged ownership links to the company — the statement may be somewhat controversial.
You have some very disgruntled people doing their darndest to fly rumors about Bodog.
I decided to believe nothing I read and just watch what actually happens.
There always seems to be stories floating around about bodog. Can’t a dog get some love?
Thing is … I would normally be very reluctant to post stories that amount to little more than rumors. I wasn’t 100 percent sure whether this is the kind of news that brings any value to our readers.
The bottom line, though, is that we try to keep y’all up to date with what’s happening in the industry. We’re not endorsing this news, or trying to spread possibly incorrect info about Bodog (or anybody else). We just want to keep you in touch with what people are talking about now.
So, I encourage you to think of it as just an unverified report (as I tried to communicate in my headline), and not as hard news, as Dominique mentions below.
Understood Nathan.
It’s always best to have the info reported here where we can get a bit of discussion and additional info.
I find what you do a very useful service.
:hattip:Another report on the Bodog situation. This one is based on an article from the Vancouver Sun.
Vancouver Sun Reports Bodog Empire “Continues to Crumble” — Report appears to contradict bullish attitude of Morris Mohawk
August 28, 2008 (InfoPowa News) — The controversial Bodog group remained in the headlines this week following allegations that the company was in trouble and cutting hundreds of jobs in Canada (read previous story here).
In sharp contrast to a very positive statement given to InfoPowa by Morris Mohawk Group‘s CEO Alwyn Morris earlier in the week, Vancouver Sun writer David Baines claimed that the Bodog online gambling empire “continues to crumble.”
Baines bases his report on a number of factors — the action by federal authorities in the United States that has seen millions of dollars seized and a reportedly detailed ongoing investigation into the company’s financial channels; the confirmed staff cutbacks; the possibility that Bodog-Morris Mohawk operations in the United States may cease; Bodog founder Calvin Ayre‘s recent ‘retirement’ announcement and reports on a range of Internet forums and media that players have had to endure slow-paying by the company.
Baines has received information confirming that more than 200 jobs have been lost at Fiver Media — formerly Riptown Media — which provides marketing and website support for Bodog from offices in Vancouver and Toronto. When he tried to follow through on the story by visiting the company and asking to speak to Fiver Media boss Jim Phillips, a Vancouver chartered accountant and former senior partner with the Vancouver accounting firm Morgan & Company, he was turned away despite noting that Phillips was in the office at the time.
“Phillips prefers to work in the background, Wizard of Oz style. But make no mistake: He has played an instrumental role in the development of Bodog’s online gambling activities,” Baines notes. “I would not be surprised if the U.S. Justice Department doesn’t have him, as well as Ayre, in its crosshairs.”
The Vancouver Sun piece summarizes the report in Forbes Magazine that the U.S. government has seized $24 million from U.S. bank accounts linked to Bodog, pointing out that this has caused serious problems. Baines recalls Ayre’s retirement, handing authority over Bodog North American operations to Alwyn Morris’s company Morris Mohawk Gaming in Kahnawake.
But Baines suggests that the retirement really amounts to an exile, with Ayre effectively unable to risk entering the United States or his home country Canada for fear of arrest.
The Vancouver Sun confirms that Bodog’s support operations in British Columbia consist of Fiver Media, which operates from an office in Vancouver, and Triple Crown Customer Service, which provides customer account service from an office in Burnaby. Triple Crown’s status is unclear, with its website currently “under construction.”
@Dominique 173851 wrote:
You have some very disgruntled people doing their darndest to fly rumors about Bodog.
got any examples of that Dom?
just came across this article on gambling911 regarding bodog problems particularly its employees . if you follow some of the links from the article you can get even more indepth opinions.
although im not surprised, i seriously didn’t realize that there are so many issues at that company particularly @ the management level. i’m now beginning to consider whether it makes sense to continue promoting bodog :crazy:
We make $xx,xxx a month from them so really difficult not to promote them so going to ride this one out .If we didn’t promote them or do so well i am not sure what we would do.
Just received notification from Bodog that they are not running their NFL fantasy competitions this year.
I guess that’s an indication of lack of staff as it must take quite a bit of time to administrate, provide content and live scoring updates.
I believe that they’re going to finish their MLB fantasy season – but I would not expect to see it next season.
This is an obvious sign of problems with the new management not really understanding what it was that made the old bodog a quality destination.
:sarcasm:Like CBG we also earn a tidy crust at Bodog, but I too would not be looking to start with them. We may downgrade our existing promotion of them as well.
Personal opinion – it was about time they scrapped all those non-essential parts of Bodog. Bodog TV, Nation, blog, beat, etc. were all money losers and unnecessary for running the business.
As far as I am concerned – they can get rid of the sportsbook, too
And, the latest report on Bodog:
Gambling911: Bodog Continues to Bounce Checks
“Be careful” with Bodog checks, warns Gambling 911.comGambling911.com (http://www.gambling911.com)recently issued a warning: “Be careful when depositing one of those Bodog checks. They could be rubber and bounce like an NBA basketball.”
In the wake of a number of reports speculating on just what’s happening with Bodog, this latest warning only highlights the company’s historical difficulties with payment processors. This, writes Christopher Costigan in the article, “has emerged as a result of the group’s insistence on utilizing more internal avenues of processing as opposed to working with outside companies. It is with some irony that this business model has played a major role in building the Bodog brand in recent years.
“But the environment has changed,” he continues. “For those depositing these ‘suspect’ checks, there is more than just an insufficient funds fee at stake. One’s credit score can be damaged as well. Bounced checks can trash your credit!”
Click here to read “Bodog Continues to Pay Customers, Vendors With Bounced Checks” by Christopher Costigan on Gambling911.com.
